Chesapeake Utilities Q2 EPS rises 24.4% y/y

Overview

• Chesapeake Utilities Q2 net income rises to $23.9 mln, EPS up 24.4% yr/yr

• Adjusted EPS for Q2 grows 20.9% yr/yr, driven by natural gas demand

• Company raises 2025 capital guidance to $375-$425 mln, reflecting project advances

Outlook

• Chesapeake reaffirms 2025 EPS guidance of $6.15-$6.35

• Company increases 2025 capital guidance to $375-$425 mln

• Chesapeake reaffirms 2028 EPS guidance of $7.75-$8.00

• Company maintains 2024-2028 capital expenditure guidance of $1.5-$1.8 bln

Result Drivers

• NATURAL GAS DEMAND - Growth in natural gas demand and transmission expansion projects contributed to Q2 results

• REGULATORY INITIATIVES - Regulatory initiatives and infrastructure programs drove adjusted gross margin growth

• INCREASED SERVICES - Expanded CNG, RNG, and LNG services boosted earnings

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the natural gas utilities peer group is "buy"

• Wall Street's median 12-month price target for Chesapeake Utilities Corp is $138.00, about 12.7% above its August 6 closing price of $120.54

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: